Wholesale prices rose slightly in May, driven by costlier goods, signaling persistent inflation pressures at the producer level, according to Bureau of Labor Statistics data released Thursday.
The Producer Price Index (PPI) climbed 0.1% from April, in line with expectations, pushing the annual rate to 2.6%. The modest gain follows a revised 0.2% drop in April, initially attributed to falling trade margins. That revision showed the plunge in trade services was less steep than reported, softening concerns.
Goods prices increased 0.2%, while services ticked up 0.1%. Core goods, which exclude food and energy, contributed the bulk of the increase. Durable consumer goods prices jumped 0.4%, the largest monthly rise since January 2023.
Food prices rose 0.1%, and energy prices remained flat. Core PPI, excluding food and energy, also edged up 0.1% in May and 3% year-over-year.
Economists warn Trump’s tariffs may drive further inflation in coming months.
